European Factors to Watch-Shares seen edging higher after one-month low

jueves 13 de marzo de 2014 03:41 GYT

LONDON, March 13 (Reuters) - European shares were expected to edge higher in cautious trading on Thursday, with a more than 3 percent slide in less than a week to a one-month low seen prompting some investors to look for bargains.

However, more data from China indicating a slowdown in economic growth in the world's second-largest economy was likely to keep investors jittery and make major stock indexes vulnerable to further sell-offs, analysts said.

China's industrial output growth came in below forecasts for the combined January/February period, with retail sales also weaker than expected. Some analysts said the figures pointed to a 7 percent economic growth this year, against a target of 7.5 percent.

The tense geopolitical situation in Ukraine has also been forcing investors to trade cautiously. A resolution of the dispute in the near-term remained out of sight, with the European Union agreeing on a framework for its first sanctions on Russia since the Cold War.

"In the short-run, equity markets are risk-averse due to the political uncertainties and the fear of a slowdown in China," Christian Stocker, equity strategist at UniCredit, said.

"But in the medium-term, the picture remains positive for equities. Our mid-year index target for the DAX is 10,000 points and for the Euro STOXX 50 is 3,250 points."

Germany's DAX fell 1.3 percent to 9,188.69 points on Wednesday, while the euro zone's blue chip Euro STOXX 50 ended 0.9 percent lower at 3,065.46 points.

At 0729 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were 0.1 to 0.3 percent higher.   Continuación...